Tata Communications Invests US$430M in Asian Expansion

Indian telecommunications operator Tata Communications will spend US$430 million to set up a data center in Singapore and a regional cable system with an eye to tapping opportunities in emerging Asian markets.

Tata Communications will spend $180 million on the data center in Singapore in addition to $250 million earmarked for the cable system, a spokesman said, requesting that his name not be used because of a company policy.

Some of the funds allocated for the cable system have already been spent. The spokesman declined to say how much more will be invested to complete the network.

The main segment of the multi-terabit cable system, called TGN-Intra Asia Cable System, has already been completed. The company is also tying up with Globe Telecom to expand the cable system into the Philippines and with EVN Telecom to expand to Vietnam.

When completed, the 6,700 kilometer cable system will connect emerging markets, including the Philippines and Vietnam, the spokesman said. As growth in the developing economy flattens out, emerging markets are seen as having the most opportunity for the company, he added.

Earlier this month, Tata Communications expanded delivery capabilities for managed hosting and storage services in Mumbai, India, and now has three sites -- Mumbai, Chennai, and Hyderabad -- capable of delivering these services in the country.

The company manages and operates over 20 data centers in key markets such as US, UK and Asia.

The Singapore data center, called the Tata Communications Exchange, will be ready for operation in early 2010.

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